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| I was also going to add that you would need to get to after tax money for a fair amount of those items.
I would agree with frytown and you, that when you step back and honestly look at it; it's amazing the amount of money it takes to live. It's not all in just a couple things either. It's everything little added up.
$3500 x 12 = $42000 - and this is mostly the basic costs for 1 - 6 people.
$70000 (farm credit from above) - $42000 = $28000/ 5 kids/12 months = about $467 per kid per month. Is that out of line? $15-$16 a day? You and the wife need food too.
The big thing to bear in mind, is that many people decide that the vehicles or electricity or gas is a farm expense, so it's not included in the house cash flow, but then they pull it from the farm cash flow, because that's household stuff. They split it by taxation, but forget it in both cash flows. That's when it gets lost and people wonder where the money goes, plus they brag of cheap living.
You seem to have a pretty good idea of what's going on, and I think it's spot on. My parents speak of the 80's as poor times, but they still say, it wasn't the cost of living that hurt them , living was inexpensive, it was everything else that sucked up the money.
I think that could be the reverse this time around, but this is just my take on it. | |
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Honest discussion on living expenses
